Williams-Sonoma Inc (WSM)
Return on assets (ROA)
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,125,250 | 949,762 | 949,762 | 1,127,900 | 1,127,900 |
| Total assets | US$ in thousands | 5,301,610 | 5,273,550 | 5,273,550 | 4,663,020 | 4,663,020 |
| ROA | 21.22% | 18.01% | 18.01% | 24.19% | 24.19% |
January 31, 2025 calculation
ROA = Net income ÷ Total assets
= $1,125,250K ÷ $5,301,610K
= 21.22%
Based on the provided data for Williams-Sonoma Inc, the return on assets (ROA) has shown some fluctuations over the past few years.
In January 2023 and January 2024, the ROA was consistent at 24.19%, indicating that for every dollar of assets the company had, it generated 24.19 cents in net income. This stability suggests efficient asset utilization and profitability during those periods.
However, there was a decrease in ROA to 18.01% in January 2024. This decline may indicate a temporary dip in profitability relative to the size of the company's asset base, possibly due to changes in operating efficiency or overall economic conditions.
Subsequently, in January 2025, the ROA rose to 21.22%, showing an improvement in profitability compared to the previous year. This increase could be attributed to better asset management, higher revenues, or cost control measures implemented by the company.
Overall, although there have been fluctuations in Williams-Sonoma Inc's ROA, the positive trend towards improved profitability in the most recent year suggests the company's commitment to maximizing returns from its assets. However, it remains essential for the company to continue monitoring and optimizing its asset utilization to sustain and enhance its financial performance in the future.